(A) Minimum wage payment required. Except as provided herein, employers shall pay all employees no less than the minimum wage for each hour worked within the municipal limits of the city. Tips or commissions received and retained by a tipped employee may be counted as wages and credited towards partial satisfaction of the minimum wage. Provided, however, that the cash wage paid to a tipped employee by his or her employer shall be no less than the tipped minimum wage, which, beginning January 1, 2013, shall be 45% of the minimum wage, and beginning January 1, 2014 and each year thereafter, shall be 60% of the minimum wage. An employer may credit tips as part of the wages of a tipped employee only if the employer informs the tipped employee in advance in writing, pays the tipped employee a cash wage equal to or greater than the tipped minimum wage, and is able to establish by the tipped employee's declaration for Federal Insurance Contributions Act (FICA) purposes or by its records of charged tips that the total of the tips received by the tipped employee and the cash wages paid by the employer is equal to or greater than the minimum wage. The tips received by a tipped employee become the property of the tipped employee and may not be shared with the employer. This subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.
(B) Minimum wage rate. Beginning January 1, 2007, the minimum wage for employees shall be an hourly rate of $6.75. Beginning January 1, 2008, the minimum wage for employees shall be an hourly rate of $7.15. Beginning January 1, 2009, the minimum wage for employees shall be an hourly rate of $7.50. Beginning January 1, 2013, the minimum wage for employees shall be an hourly rate of $8.50. For employers who provide healthcare and/or childcare benefits to an employee during any pay period for which the employer pays an amount for those healthcare benefits equal to or in excess of an annualized cost of $2,500.00, beginning January 1, 2007, the minimum wage for that employee shall be an hourly rate of $5.75, in addition to the healthcare benefits and/or childcare benefits, beginning January 1, 2008, the minimum wage for that employee shall be an hourly rate of $6.15, in addition to the healthcare and/or childcare benefits, beginning January 1, 2009, the minimum wage for that employee shall be an hourly rate of $6.50, in addition to the healthcare and/or childcare benefits, and beginning January 1, 2013 and each year thereafter, the minimum wage for that employee shall be an hourly rate of $1.00 less than the current minimum wage otherwise applicable to employees who do not receive such benefits.
(C) Annual cost of living adjustment. Beginning on January 1. 2014 and annually on each January 1 thereafter, the minimum wage shall be adjusted based on the increase, if any, in the cost of living, and rounded to the nearest multiple of five cents. The increase in the cost of living shall be calculated based on the percentage increase, if any, as of August of the immediately preceding year over the level as of August of the previous year of the Consumer Price Index (All Urban Wage Earners and Clerical Workers, U.S. City Average for All Items) or its successor index as published by the U.S. Department of Labor or its successor agency. The adjusted tipped minimum wage shall be calculated based on the adjusted minimum wage, and rounded to the nearest multiple of five cents. The city shall publish the adjusted minimum wage and the adjusted tipped minimum wage for the forthcoming year on its Internet home page by October 15 of each year, and they shall become effective on January 1 of the forthcoming year.
(Ord. 12-2006; amended at a Special Municipal Election, November 6, 2012.)